Covantis, a blockchain-focused project backed by multinational agri-business companies such as Cargill, has reportedly chosen ConsenSys, a Brooklyn, New York-based Ethereum development studio, as its technology partner.
Through Convantis’ partnership with ConsenSys, the Ethereum-based software developer will create a blockchain-powered platform to fully digitize the post-trade finance sector and enhance overall efficiency while reducing operational costs for the global agri-business supply chain.
The concept of Covantis was first introduced in October 2018. Four of the world’s largest multinational agri-business firms had launched a joint project to digitize their global shipping transactions using distributed ledger technology (DLT) and artificial intelligence (AI). Covantis’ founders include Cargill, Archer Daniels Midland Company, Bunge and Louis Dreyfus Company.
Although the firms have been exploring different ways to develop standards and have been digitizing international agricultural shipping transactions since the past few years, the actual branding of the initiative was announced only two months back.
The founders of the project recently confirmed that their joint initiative will be referred to as Covantis. They also introduced a new website for the project, covantis.io. The project founders said that Stefano Rettore, former ADM president and chief risk officer, will be spearheading the initiative as an independent consultant until the project has officially appointed a chief executive.
Covantis intends to launch its digital platform this year. The addition of ConsenSys to its project should ensure a smooth launch. The project will initially focus on automating processes related to grain and oilseed post-trade execution.
ConsenSys’ management will provide Covantis several enterprise-grade blockchain software tools and services, which reportedly include PegaSys Orchestrate, Kaleido and MythX, in order to develop the blockchain platform on Ethereum. Covantis will create a secure software platform based on Quorum, a permissioned (private) Ethereum-powered blockchain implemented by JPMorgan.
“ConsenSys presented prototypes that demonstrated excellence in its field and has a track record of using blockchain technology to digitize processes in the commodity trade finance industry. We are confident this partnership will allow us to build a first-class product, centered around unparalleled functionality, security and privacy.”
ConsenSys founder Joseph Lubin stated:
“The strength of the Covantis initiative’s commitment to leverage innovative, best-in-class technologies to transform global trade operations for agricultural commodities is inspiring. This platform is evidence that blockchain technology has started to deliver on its promise of unlocking value through collaboration and removal of information silos within and across industries.”